PayPal announced that it has agreed to acquire Simility, a leading fraud prevention and risk management platform, for a purchase price of $120 million in cash, subject to certain adjustments.

The acquisition of Simility will enhance PayPal’s ability to deliver fraud prevention and risk management solutions to merchants globally.

“Digital commerce has exploded, and fraudsters have taken note, adapting and developing new methods to carry out their crimes,” said Bill Ready, chief operating officer, PayPal.

“Together with Simility, we will be able to put more control in the hands of our merchants to fight fraud while helping make commerce experiences faster and more secure.”

Following the close of the transaction, merchants on the PayPal platform will gain access to fraud tools that can be customised to reflect the nuances of their businesses through their existing account management dashboard.

These machine learning-powered tools, which dynamically adapt and evolve with each transaction, will enhance payment experiences for merchants and their customers by helping to reduce fraudulent payment activity and, in some cases, verifying transactions that may have otherwise failed.

“Our vision for Simility was to create an adaptive risk management platform that empowers organizations operating in a digital world to manage an evolving fraud and risk landscape,” said Rahul Pangam, co-founder and CEO, Simility.

“We are excited to enter the next phase of our growth with PayPal and are thrilled to join them to help drive the next generation of payment and commerce solutions while scaling our business together.”

Subject to customary closing conditions, this transaction is expected to close in the third quarter of 2018.

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